SHRI MEGHJI RAVJI & HANSBAI MEGHJI RAMBHIYA PUBLIC CHARITABLE TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

The assessee has raised the following grounds of appeal:

Briefly stated, the assessee is a public charitable trust. It filed Form No. 10AB on 29.09.2025 seeking renewal of approval under section 80G of the Act under clause (ii) of the first proviso to section 80G(5). The assessee had also filed, on the same date, a separate application in Form No. 10AB seeking renewal of its registration under section 12AB of the Act, under clause (ii) of section 12A(1)(ac). The said application for registration under section 12AB was rejected by the Ld. CIT(E) vide order dated 14.02.2026. 3 Rambhiya Public Charitable Trust

The Ld. CIT(E) observed that section 80G(5)(i) stipulates that the benefit of section 80G is available to an institution or fund to which sections 11 and 12, section 10(23AA) or section 10(23C) apply. Since the assessee's application for registration under section 12AB had been rejected, the Ld. CIT(E) held that the assessee did not fulfil the requisite condition and, consequently, its application for approval under section 80G became untenable. The application in Form No. 10AB seeking approval under section 80G was, accordingly, rejected.

Before us, the learned Authorised Representative (AR) submitted that the rejection of the assessee's application for approval under section 80G is consequential to the rejection of the assessee's application for registration under section 12AB. It was submitted that the assessee had challenged the rejection of registration under section 12AB before the Tribunal in ITA No. 3347/Mum/2026 and the Co-ordinate Bench had restored the matter to the file of the Ld. CIT(E) for reconsideration of the assessee's application for registration under section 12AB and the order of the said appeal is awaited. The learned AR, therefore, submitted that the present matter concerning approval under section 80G may also be restored to the file of the Ld. CIT(E), as its rejection was solely consequential to the rejection of registration under section 12AB.

The learned Departmental Representative relied upon the order of the Ld. CIT(E). However, the learned DR did not raise any objection to the matter being restored to the file of the Ld. CIT(E)

We have considered the rival submissions and perused the material placed on record. We find that the Ld. CIT(E) rejected the assessee's application for approval under section 80G for the sole reason that its application for renewal of registration under section 12AB had been rejected vide order dated 14.02.2026. The Ld. CIT(E), therefore, considered that the condition stipulated under section 80G(5)(i) was not fulfilled and treated the application for approval under section 80G as untenable.

We further find that the assessee had challenged the order dated 14.02.2026 rejecting its registration under section 12AB before the Co-ordinate Bench in ITA No. 3347/Mum/2026. The Co-ordinate Bench, vide order dated 21.07.2026, restored the matter to the file of the Ld. CIT(E) for reconsideration of the assessee's application for registration under section 12AB. The Co-ordinate Bench observed that registration under section 12AB could not be denied merely in the absence of an irrevocable clause in the trust deed and directed reconsideration in the light of the decision of the Hon'ble Juri ictional High Court referred to therein.

Thus, it is evident that the rejection of the assessee's application for approval under section 80G is consequential to the rejection of its application for registration under section 12AB. Since the issue of registration under section 12AB has Rambhiya Public Charitable Trust already been restored by the Co-ordinate Bench to the file of the Ld. CIT(E) for fresh consideration, in our considered view, the consequential issue relating to approval under section 80G also requires reconsideration by the Ld. CIT(E).

We, therefore, set aside the impugned order dated 14.02.2026 rejecting the assessee's application for approval under section 80G and restore the matter to the file of the Ld. CIT(E) for fresh adjudication in accordance with law, having regard to the outcome of the proceedings concerning the assessee's application for registration under section 12AB, which have already been restored to his file by the Co-ordinate Bench in ITA No. 3347/Mum/2026. Needless to say, the Ld. CIT(E) shall afford reasonable opportunity of being heard to the assessee before deciding the application afresh. We have not expressed any opinion on the merits of the assessee's eligibility for approval under section 80G. In view of the above, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 24.07.2026. (SAKTIJIT DEY) ACCOUNTANT MEMBER Mumbai, Dated 24/07/2026 Dhananjay, Sr.PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. संबंधधत आयकर आयुक्त / The CIT(A) आयकर आयुक्त(अपील) / Concerned CIT 4. धिभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, मुम्बई / DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. 6. आदेशानुसार/ BY ORDER, सत्याधपत प्रधत //// 1. उि/सहायक िंजीकार ( Asst.